Following a discussion, and having considered the recommendation of the Ethics and Finance Committee, the Board decided:

(a) To set a cap for a fee of 8.5 per cent for all projects/programmes funded by the Adaptation Fund;

(b) That implementing entities should provide a budget on fee use in project or programme proposals, which would be considered during project and programme review; and

(c) That the fee policy could be reviewed and adjusted after three years, or more specifically at the meeting of the Board following the ninth session of the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol.